The island was formerly known as Ruatan and Rattan. It is approximately 77 kilometres (48 mi) long, and less than 8 kilometres (5.0 mi) across at its widest point. The island consists of two municipalities: José Santos Guardiola in the east and Roatán, including the Cayos Cochinos, further south in the west.

The most populous town of the island is Coxen Hole, capital of Roatán municipality, located in the southwest. The easternmost quarter of the island is separated by a channel through the mangroves that is 15 meters wide on average. This section is called Helene, or Santa Elena in Spanish. Satellite islands at the eastern end are Morat, Barbareta, and Pigeon Cay. Further west between French Harbour and Coxen Hole is Stamp Cay and Barefoot Cay.[citation needed]

Throughout European colonial times, the Bay of Honduras attracted an array of individual settlers, pirates, traders and military forces. Various economic activities were engaged in and political struggles played out between the European powers, chiefly Britain and Spain. Roatán and the other islands were used as frequent resting points for sea travellers. On several occasions, they were subject to military occupation. In contesting with the Spanish for colonization of the Caribbean, the English occupied the Bay Islands on and off between 1550 and 1700. During this time, buccaneers found the vacated, mostly unprotected islands a haven for safe harbour and transport. English, French and Dutch pirates established settlements on the islands. They frequently raided Spanish cargo vessels carrying gold and other treasures from the New World to Spain.

In 1797, the British defeated the Black Carib, who had been supported by the French, in a battle for control of the Windward Caribbean island of St. Vincent. Weary of their resistance to British plans for sugar plantations, the British rounded up the St. Vincent Black Carib and deported them to Roatán. The majority of Black Carib migrated to Trujillo on mainland Honduras, but a portion remained to found the community of Punta Gorda on the northern coast of Roatán. The Black Carib, whose ancestry includes Arawak and African Maroons, remained in Punta Gorda, becoming the Bay Island's first permanent post-Columbian settlers.[citation needed] They also migrated from there to parts of the northern coast of Central America, becoming the foundation of the modern-day Garífuna culture.

The majority permanent population of Roatán originated from the Cayman Islands near Jamaica. They arrived in the 1830s shortly after Britain's abolition of slavery in 1838. The changes in labour force disrupted the economic structure of Caymanian culture. Caymanians were largely a seafaring culture and were familiar with the area from turtle fishing and other activities. Former Caymanian slaveholders were among the first to settle in the seaside locations throughout primarily western Roatán. Former slaves also migrated from the Cayman Islands in larger number than planters, during the late 1830s and 1840s. Altogether, the former Caymanians became the largest cultural group on the island.[1]

For a brief period in the 1850s, Britain declared the Bay Islands its colony. Within a decade, the Crown ceded the territory formally back to Honduras. British colonists were sent though, and asked William Walker, a freebooter with a private army, to help end the crisis in 1860 by invading Honduras; he was captured upon landing in Trujillo and executed there.

In the latter half of the 19th century, the island populations grew steadily and established new settlements all over Roatán and the other islands. Settlers came from all over the world and played a part in shaping the cultural face of the island. Islanders started a fruit trade industry which became profitable. By the 1870s it was purchased by American interests, most notably the New Orleans and Bay Islands Fruit Company. Later companies, the Standard Fruit and United Fruit Companies became the foundation for modern-day fruit companies, the industry which gave Honduras the sobriquet "banana republic".

The 20th century saw continued population growth resulting in increasing economic changes, and environmental challenges. A population boom began with an influx of Spanish-speaking Mestizo migrants from the Honduran mainland and in the last decades, they tripled the original resident population. Mestizo migrants settled primarily in the urban areas of Coxen Hole and Barrio Los Fuertes (near French Harbour). But in terms of population and economic influence, the mainlander influx was dwarfed by the overwhelming tourist presence in most recent years. Numerous American, Canadian, British, New Zealand, Australian and South African settlers and entrepreneurs engaged chiefly in the fishing industry, and later, provided the foundation for attracting the tourist trade.

In 1998, Roatán suffered some damage from Hurricane Mitch, temporarily paralyzing most commercial activity. The storm also broke the popular dive-wrecks "Aguila" and "Odyssey" into several pieces.

The Caracol people are an English-speaking people who have been established in Northern Honduras (specifically, the Bay Islands) since the early 19th century. They are chiefly of European and British-Afro-Caribbean descent. "Caracol" is Spanish for "conch, snail or shell", and relates the people of the Bay Islands to their unique environment and their seafaring culture. In its current usage, the term "caracol" refers to all people born in the Bay Islands region, and their descendants. The term "caracol" has also been deemed offensive by native Islanders and the term is only used by Spanish-speaking "mainland" Hondurans who have a long-standing rivalry with native Bay Islanders because of their differences in culture, language, beliefs and ideals. All native islanders regardless of race, creed or colour prefer the term "Islanders" when being referred to. The region of the Bay Islands encompasses the three major islands of Roatán, Útila and Guanaja, the Hog Islands as well as the smaller islands or cays. These people are also called "Islanders", especially locally.

English is the first language of native islanders regardless of race and Spanish is spoken second, whereas mainland Honduras is Spanish-speaking. It remains this way because of the islands' past as a British colony with descendants of the British Isles. With the steady influx of mainland Hondurans migrating to the islands, Spanish language use has increased. Because of the tourism and cruise ship industry that supports the islands, English continues to be the first spoken and dominant language among all native island peoples. Over time, the form of English spoken by the Caracol has changed. The language differs mostly in morphology but also in pronunciation and accent and, to a lesser extent, in syntax and vocabulary, from the English of the other British Caribbean colonies, as evidenced by the usage of a wide variety of old standard English terms and words throughout the islands. They are similar enough to be mutually intelligible and understood throughout the entire Bay Islands. The language can also be learned, although it is not taught in the general sense, whilst the accent derives from the wide variety of expatriates living and working on the Islands from North America and Europe.

View from Big Bight over the Mesoamerican Barrier Reef System, 2nd largest barrier reef in the world

Roatán lies on the southern edge of the Mesoamerican Barrier Reef System, the 2nd largest barrier reef in the world. Reef systems are very delicate and have experienced massive damage and degradation worldwide. On Roatán, unchecked tourism development and an increased population are putting a strain on its natural resources. Deforestation, run-off, poorly managed waste treatment, and pollution are the main threats to the terrestrial and marine environments.

The capital city of Coxen Hole underwent a major reconstruction between the years of 2003 to 2005 adding new black water and septic lines as well as fresh water lines to accommodate the growing business sector and population. These lines are used in conjunction with the new water treatment plant and a waste management plant that recycles waste which are adjacent to the Roatán International Airport.

A similar project has been completed and now serving West End Village (the Islands tourism, social and diving hub) with even greater success than its predecessors. Although the project was initially met with some skepticism and anger at a tax hike proposed to help fund the project, it has turned out to be an overwhelming success with a new state of the art road, pumping station, sewer lines and drainage system. The project and its facilities are currently maintained and operated by ACME sanitation and solutions. It was not that long ago where "sanitation" was provided by hundreds of out-houses located at the ends of short boardwalks over the water. In the smaller communities, this "system" may be still in use.

The Roatán Marine Park was the main force behind introducing recycling to the Island as well as the popular "Coastal clean up" projects that have become very popular among schools, residents and expatriate communities on the Island. The Marine Park is led by a team of professional divers, marine biologists and oceanographers.

The Roatán Marine Park (RMP) is a grassroots, community-based, non-profit organization located on Roatan. The organization was formed in January 2005 when a group of concerned dive operators and local businesses united in an effort to protect Roatan’s fragile coral reefs. Initially, the RMP's goal was to run a patrol program within the Sandy Bay-West End Marine Reserve (SBWEMR), to prevent over exploitation through unsustainable fishing practices. Over time, the organization expanded the scope of their environmental efforts through the addition of other programs to protect Roatan’s natural resources, including patrols and infrastructure, education, conservation and public awareness.

All reef systems throughout the Bay Islands are protected by the local and central government with help from charitable donations and those on the front line. Through local donations to the Marine Park and the many causes along with a concerted effort from the resorts on the island weekly cleanups are undertaken to insure no metals or plastics litter the reef system and beaches as well as all major dive shops doing cleanups on most of their daily dives. There are still obstacles to be defeated but the Islanders and expatriates living on the islands have taken a united stand to conserve and educate.